KEY POINTS
- Libya’s NOC plans to offer 22 onshore and offshore blocks to international bidders, modernizing agreements for transparency.
- Oil production has reached 1.422 million barrels daily, with further increases planned as infrastructure projects advance.
- Key projects include resolving Ras Lanuf refinery’s status post-Trasta Energy exit and enhancing Libya’s energy value chain.
National Oil Corporation (NOC) of Libya has announced plans to auction 22 onshore and offshore exploration blocks in a public tender, seeking to attract foreign investment to revitalize the country’s energy sector.
The tender, expected to launch soon, was unveiled during a high-level meeting on December 7 chaired by Prime Minister Abdul Hamid Dbeibah.
Revamping Libya’s hydrocarbon sector
According to Energycapitalpower, NOC Chairman Farhat Bengdara stated that the initiative aligns with efforts to modernize Libya’s oil and gas industry. The corporation has developed a revised standard agreement and procedural manual, integrating technical amendments to ensure a more efficient and transparent bidding process for international oil companies.
“The upcoming tender underscores Libya’s commitment to enhancing hydrocarbon production and creating opportunities for international collaboration,” Bengdara said.
The NOC has reported steady hydrocarbon production, with oil and condensate output reaching 1.422 million barrels per day. Bengdara emphasized that the production increase plan remains on schedule, reflecting the corporation’s operational resilience despite ongoing challenges in Libya.
Strategic projects in focus
During the same meeting, discussions extended to several key projects aimed at stabilizing and expanding Libya’s energy infrastructure. One priority is resolving the status of the Ras Lanuf refinery, following the withdrawal of Emirati partner Trasta Energy. The NOC has secured approval to acquire Trasta’s shares, signaling its intent to regain full control of the strategic asset.
Other projects under review include expanding refinery capacities and upgrading export facilities to accommodate anticipated increases in production. These efforts are part of a broader strategy to optimize the value chain within Libya’s oil and gas industry.
Encouraging foreign investment
Libya’s decision to offer new exploration blocks comes at a time when the global energy market is seeking additional sources to meet rising demand. By opening its vast reserves to international bidders, Libya hopes to attract major oil companies and secure technological expertise and capital to accelerate its recovery from years of conflict and instability.
The tender is anticipated to feature terms favorable to foreign investors, including enhanced profit-sharing mechanisms and extended exploration timelines. Libya’s proven reserves of over 48 billion barrels of oil, combined with significant gas potential, position it as a highly attractive destination for energy sector investments.
As Libya seeks to stabilize its political landscape, the upcoming tender represents a significant step toward restoring its position as a key player in the global energy market. The success of this initiative will depend on the NOC’s ability to balance investor interests with national priorities, while addressing operational challenges and ensuring long-term sustainability.
